2020 INTERIM RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

August 6, 2020 – Hong Kong

This presentation may contain “forward-looking statements” that are not historical in nature. These forward-looking statements, which include, without limitation,

statements regarding PCCW's future results of operations, financial condition or business prospects, are based on the current beliefs, assumptions, expectations, estimates, and projections of the directors and management of PCCW about the

business, the industry and the markets in which PCCW operates. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond PCCW's control and are difficult to predict. Actual results could differ materially from those expressed, implied or forecasted in

these forward-looking statements for a variety of factors

Forward Looking Statements

2

Overview

BG Srinivas Group Managing Director

3

4

PCCW Group Response to COVID-19

Employees Work remotely for all non-

essential / non-business critical functions and flexible work-hour arrangements

Provision of protective gears (face masks and hand sanitizers)

Frequent cleaning and disinfection of premises

Minimize face to face meetings and emphasise virtual meetings

Customers Core operations on the whole have

been uninterrupted

Innovate service offerings and establish new modes of operations

Prescribed precautionary measures for onsite field staff

Technology Ensure network robustness in

response to increasing and changing customer usage patterns

Enable our staff to leverage online collaboration and communication tools to serve our customers remotely

Shift resources to self-serviced and digital channels to maintain customer service level

5

… And Sustaining Market Leadership in Hong Kong

All data as of June 30, 2020

Expanding Our Media and Solutions Businesses Regionally…

OTT revenue from outside of HK

70 %

Active PCCW Solutions customers based outside of HK in Forbes Global 2000

127 PCCW Solutions workforce based outside of HK

50 % 29 OTT markets outside of HK

Fixed, Voice, Broadband and Mobile

Pay TV IT Services

No.1 No.1 No.1

Financial Review

Susanna Hui Group Chief Financial Officer

6

Financial Highlights

EBITDA 678 694 2%

Revenue 2,161 2,344 8%

H1’19 H1’20 % change (US$ million)

7

PCPD 26 206 674%

Solutions 220 244 11%

HKT 1,937 1,872 (3)%

Media 247 244 (1)%

OTT 57 64 14%

Now TV 174 163 (6)%

Free TV 16 17 2%

Revenue (US$ million) H1’20 H1’19 % change

PCPD (2) 2

Solutions 38 29 (23)%

HKT 735 711 (3)%

Media (22) 3

OTT (30) (10) 66%

Now TV 26 25 (3)%

Free TV (18) (12) 34%

EBITDA (US$ million) H1’20 H1’19 % change

(39) (39)

491 487

283 263

MobileTSSOthers

(41) (42)

1,309 1,332

497 458

172 124

Mobile Product Sales

Mobile Services

TSS

Eliminations & Others

H1’20 H1’19

HKT Revenue (US$ million)

Resilient Financial Performance Adjusted Funds Flow stable at US$292 million

Interim Distribution of 30.10 HK cents per SSU

Total EBITDA decreased by 3% to US$711 million

Total EBITDA margin stable

Total revenue decreased by 3% reflecting 1) softer Mobile product sales due to the subdued consumer sentiment and 2) material decline in roaming

Offset by 1) boosted demand in broadband and 2) scale and resilience of diversified business portfolio

8

TSS Revenue +2% yoy

HKT EBITDA (US$ million)

H1’20 H1’19

735

38% 38%

HKT EBITDA Margin

42% 41%

Total

Exclude Mobile Product Sales

1,937 1,872 711

9

Revenue softened by live sports suspension and

commercial activities shutdown

Installed base remained steady at 1,356,000

H1’19

(US$ million) Now TV Revenue

H1’19

(US$ million) Now TV EBITDA

15% EBITDA Margin

Maintained EBITDA with margin improved to 16%

Streamlining of content costs and controls on

publicity & promotion spending

26 25

159 153

15 10

174 163

Others

Subscription

H1’20 H1’20

16%

Steady Performance Aided by Cost Controls

44 56

13

8 57 64

Music and Others

Video

H1’20

(US$ million) OTT Revenue

10

40

Sustained Growth Momentum

Video segment recorded impressive growth; now represents 86% of total revenue

Viu revenue increased by 46% driven by subscription growth; paying subscribers

grew 119% to 4.3 million while MAUs expanded by 21% to 36.1 million

Pan-regional Asian content and Viu Originals continued to drive user growth and

engagement

Music segment affected by live event cancellations due to COVID-19

Enlarged revenue base and disciplined spending

narrowed EBITDA loss

Will continue to benefit from growing brand and

scale

(30)

(10)

H1’19

(US$ million) OTT EBITDA

+26% yoy

H1’19

H1’20

+ 14% yoy

12 14

4 3

16 17

Others

Advertising

11

(18) (12)

340

(US$ million) ViuTV EBITDA

H1’20

Expanded revenue and cost control helped

narrow EBITDA loss

(US$ million) ViuTV Revenue

H1’19

Expanded viewership fueled 19% growth in advertising revenue

despite overall decline in ad market

Overall revenue growth moderated by lower drama distribution

revenue

Higher Advertising Revenue on Improved Ratings

+19% yoy

H1’20

H1’19

+ 2% yoy

Value Creation on Media Assets

12

Strategic Review of OTT Business

Strategic review to support future growth

Evaluating various alternatives including separate listing or additional investments from strategic investors

Unlock value to PCCW shareholders

Crystalize value of NowTV

Cash proceeds of US$250m to reduce debt

Accretive and enhances financial position

Continue to benefit from NowTV and subsequent synergies through majority shareholding in HKT

PCCW

Position HKT to be the only genuine quad-play services provider in Hong Kong

Maximize full synergy potential between NowTV and HKT’s broadband and wireless businesses

Greater pricing flexibility to tailor differentiated service offerings

Gain operational efficiencies

AFF accretive to HKT

HKT

Transfer NowTV Business to HKT

(1) (10)

39 39

77 59

143 185

13

Revenue growth of 11% primarily driven by projects in Southeast Asia and strong demand for data centers

Data center revenue grew by 21% reflecting strong demand from hyper scale cloud providers and leading financial institutions

Healthy pipeline of secured orders increasing by 43% to US$1,354 million; underpinned by a significant increase in the international segment

Driving Growth through Regional Expansion

Recurring

Project based

Lockdowns during first half materially affected staff utilization

Number of large scale IT projects have been delayed or put on-hold

Incurrence of bad debts and cost over-runs

(US$ million) Solutions EBITDA

17% 12% Total

38

(US$ million) Solutions Revenue

H1’20 H1’19

220

H1’20 H1’19

27% 21% Recurring

EBITDA Margin

+30% yoy

+11% yoy 244

29

(39) (32)

311 272

112

102

30

32

Solutions

Media

HKT

Others

Opex Focus in Challenging Conditions

Core opex to revenue ratio declined to 18%

Core opex savings of 10% year-on-year

Cost control measures

Reduce discretionary spending on

publicity & promotion

Optimize retail shop portfolio

19% 18% Core Opex

to Revenue Ratio:

14

Core Operating Expenses (US$ million)

H1’20 H1’19

414 374

171 154

8

8

31

15

Solutions

Media

HKT

Measured Capex to Support Future Growth

Capex to revenue ratio was 8.3%

Mobile capex steady as 5G rollout and critical

infrastructure enhancements substituted prior

spending on 4G

TSS capex shrank reflecting the maturity of fiber

backbone investments made to date

Media capex light and steady

Solutions capex decreased due to completion of

Phase 1 of Fo Tan data center expansion in Hong

Kong; capex in second half for Phase 2 rollout

Core Business Capex to Revenue Ratio: 9.8% 8.3%

H1’20 H1’19

Core Capex

15

210

177

(US$ million)

Healthy Liquidity

16

As of Dec 2019

As of Jun 2020

US$ million

Gross Debt

Cash Balance (5)

Undrawn Facilities

Gross Debt

Cash Balance (5)

Undrawn Facilities

HKT 5,220 372 1,178 5,324 299 1,087

Total 6,037 569 2,139 6,323 452 1,956

Core Gross Debt (1) / EBITDA (3) 3.77x 3.97x

Core Net Debt (2) / EBITDA (4) 3.41x 3.68x

PCCW 817 197 961 999 153 869

(1) Core gross debt refers to the principal amount of short-term and long-term borrowings (excluding PCPD)

(2) Core net debt refers to the principal amount of short-term and long-term borrowings minus cash balance (excluding PCPD)

(3) Based on core gross debt as at period end divided by EBITDA for the 12-month period

(4) Based on core net debt as at period end divided by EBITDA for the 12-month period

(5) Includes short-term deposits

500 500 750

213 500

300 290 144

1,144

551

432

1

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

HKT Bank Loans

HKT Bonds

Current mix of floating and fixed rate debt approximately 40:60

Effective interest rate was approximately 3.4% in H1 2020

Average debt maturity of approximately 4.3 years

Debt Maturity Profile (US$ million)

17

As of June 30, 2020

HKT

630

104 93 150 11

300

100

32

19

507

41

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

PCCW Bank Loans

PCCW Bonds

PCPD Bank Loans

PCPD Bonds

PCCW & PCPD

6.99 7.96 8.16 8.57 8.91 9.18 9.18

13.21 17.04

20.17 21.18 22.33 23.00

2014 2015 2016 2017 2018 2019 2020

FinalDividendPer Share

InterimDividendPer Share

25.00

20.20

* Based on PCCW closing price on the annual results announcement date for each respective year;

2019 dividend yield based on share price at the end of morning session on February 13, 2020

Dividend Yield *

Delivering Sustainable Returns to Shareholders

HKT Distribution Pass-through

(HK cents)

18

28.33

71% 74% 74% 90% 90% 90%

3.81% 4.95% 6.19% 6.79% 6.63% 6.70%

29.75 31.24

Interim Cash Dividend

9.18 HK cents (Stable YoY)

32.18 Special Interim Dividend

85 PCPD shares

(potential for additional 23 shares)

for every 1,000 PCCW shares

Media Business

19

Pay TV Business

20

1,304K 1,303K 1,301K

1,344K 1,361K 1,356K

2015 2016 2017 2018 2019 H1 2020

Installed Base

Demonstrated Resilience in H1 2020

21

• Revenue impacted by suspension of EURO & live sports and softness in commercial sector due to COVID-19 pandemic. Business performance expected to improve in the second half as live sports resume

• Stable EBITDA at US$25M as a result of improved operational efficiency and content cost streamlining

• Customer base remained steady at 1.36 million

Stay Home. Stay Entertained. Increased Engagement.

Stay-Home Stay-Entertained Campaign

• Supported public to stay home with free trial viewing of 9,000+ hours of entertainment via Now E OTT platform including news, movies, TV series, variety shows and sports for Hong Kong consumers

• Similarly offered free sampler of selected channels and On Demand library for Now TV customers

Video On Demand

• Over 20,000 hours of movies, entertainment, documentary and sports programs available on demand

• Strong line-up of Hollywood movies on demand. Shortened release window including a title co-released with Hong Kong cinema – “Trolls World Tour” ; some titles released shortly after cinema premiere

22

Viewership grew in 2020 H1 as a result of Stay-Home Stay-Entertained campaign

AVERAGE DAILY REACH

y-o-y change

NOW TV ENTERTAINMENT

AVERAGE DAILY REACH

y-o-y change

NOW NEWS (Ch 332)

AVERAGE DAILY REACH

y-o-y change

H1’19 H1’20

12% 19% 68%

H1’19 H1’20 H1’19 H1’20 Source: CSM Media Research

23

Live Sports Return

Soccer Tennis Golf

Business momentum is expected to improve as live sports resume in second half

Motorsports Badminton Snooker

From Jun From Aug From Jun From Jul From Sep From Jun

24

OTT Business

25

Average Monthly Time on App (GSEA)*

Other top 5 players

+59% +41%

Before Covid during Covid

Dec19-Jan20 Feb-Jun20 Dec19-Jan20 Feb-Jun20

Before Covid during Covid

Proven Resilience with Robust Dual Monetization Engine

* Source: App Annie 2019/12-2020/06 data, figures are average of the player(s); Before Covid refers to 2019/12-2020/01, During Covid refers to 2020/02 to 2020/06; Top 5 Players: AIS PLAY, iWant TV, Netflix, WeTV, Youtube Kids (excluded Viu); GSEA markets: Hong Kong, Indonesia, Malaysia, Philippines, Singapore and Thailand

HIGHEST NUMBER of users in Southeast Asia

STREAMING MINUTES NUMBER OF USERS

1 2 st nd

Continue to expand partnerships with Telcos. Strengthen Subscription Business premium content strategy

Findings from AMPD Research, a subsidiary of Media Partners Asia (MPA)

Dec19-Jan20 Feb-Jun20 Dec19-Jan20 Feb-Jun20

Amongst major video streaming platforms including iflix, iQiyi, Line TV, Netflix, TrueID, Vidio, WeTV,

excluding YouTube

Research period : 20/01/2020 to 11/04/2020 ; sample size : 32,300 individuals

In southeast Asia (Indonesia, Thailand, Singapore and the Philippines)

Revenue growth YoY

Partnered with more than 30 telcos in the region including

Viu Tops OTT Users and Engagement in SE Asia

Premium content behind the paywall and exclusive Viu Originals Enhanced pay layer product & functions Optimized acquisition based on data analytics and AI

46% Growth Driven by

premium subscription & high user engagement despite soft ad market

DUAL REVENUE MODEL

119% Paying Subscribers

growth YoY

Growth driven by enchanced content behind paywall & increased user

engagement

SUBSCRIPTION TIER

26

A Regional Leader in OTT Video Entertainment

All data and information below has been provided and verified by App Annie.

Viu ranked #2 in “IAP Revenue”, “Monthly Active Users” and “Total Time” in June 2020 among top video streaming apps (entertainment category) in Greater Southeast Asia (Hong Kong, Indonesia, Malaysia, Philippines, Singapore and Thailand)4.

Source: App Annie Intelligence data by using combined data and estimates from iPhone and Android Phone. 1. Revenue: Includes any paid downloads and/or in-app revenue net of the 30% platform commission that goes to the iOS or Google Play stores in June 2020 and excludes any revenue generated outside of the app stores, such as advertising and e-commerce. 2. Unique active user in June 2020. 3. Total Time: The total time spent in an app across all users in June 2020. 4. Viu ranked #2 in “IAP Revenue”, “Monthly Active Users” and “Total Time” in June 2020, compared against other Greater SEA Video Streaming Apps (entertainment category) based on the total sum of each metric across regions specified above.

Video streaming apps were identified from entertainment category apps on iOS App Store and Google Play, which include apps with some long-form videos in the form of TV series, movies, news programs and full sports events (including eSports) where the content provider retains ownership and control of the content. Apps exclusively showing short-form videos in the form of music videos, user-generated content and highlights and clips were excluded.

1

2

3

4

5

6

7

8

9

10

Netflix Netflix Netflix

Viu Viu Viu

V – Live Broadcasting TrueID YouTube Kids

WeTV iflix AIS PLAY

iQIYI iWant TV WeTV

HBO GO Singapore YouTube Kids iWant TV

Amazon Prime Video Google Play Movies and TV Twitch

MONOMAXXX LINE TV iflix

Twitch WeTV Vidio

hmvod AIS PLAY LINE TV

Over 36.1 Million Monthly Active Users

H1'19 H1'20 H1'19 H1'20

3.2 Billion Video Views

29.9

36.1 2.6

3.2

Expanded User Base and Engagement

• MAU grew 21% y-o-y and reached 36.1 million in H1 2020

• More content placed behind pay-wall to foster subscription and monetization

• VV grew 23% y-o-y and reached 3.2 Billion in H1 2020

* Normalized for India exit

* *

27

28

Growing Content Portfolio

Continued Leadership in Pan-Regional Asian Content

Continued partnership with 5 main Korean broadcasters with longer exclusivity, enhanced features and functionalities

《A World of Married Couple》 《Dr. Romantic 2》 《Parasite》

Expanded collaboration with cable channels (e.g. Channel A, TV Chosun) and movies

In addition to drama & entertainment programs from China, Hong Kong, Japan

Local Content

Penetrate local markets with content from Premium local partners & international networks

Further expand user base with cross-market impact and performance of Viu Originals

Data-driven content decisions based on consumer insights and preference of the highly engaged Viu audience enable us to deliver high performance of Viu Originals

TOP 2 TOP 3

Indonesia

Malaysia

TOP 3 TOP 9

Thailand

Malaysia TOP 6 Malaysia

In Indonesia

Top 2 amongst all content

Combined Hallyu with Thai wave, featuring K-pop idol Nichkhun (2PM),

Thai idol Mean Phiravich

Remake of Korean drama

In Malaysia

Ranked higher than the original version

*On Viu platform

29

Free TV Business

30

Viewership Growth Fueled Advertising Revenue

• Advertising revenue increased by 19% Y-o-Y attributable to the continuous growth in viewership and client base

• Increased average monthly audience reach of 4.0M compared to 3.7M in H1 20191

• Prime time average 4+ TVR increased 109% Y-o-Y2 :

o Key driver – drama time belt on weekdays 21:30-22:30 increased 172% Y-o-Y3

Family drama featuring:

1 Source: CSM Media Research HKTAM from 01 Jan – 30 Jun 2020 vs 01 Jan – 30 Jun 2019 2 Source: CSM Media Research HKTAM from 01 Jan – 30 Jun 2020 vs 01 Jan – 30 Jun 2019; prime time from 18:55-24:05 3 Source: CSM Media Research HKTAM from 01 Jan – 30 Jun 2020 vs 01 Jan – 30 Jun 2019; M-F 21:30-22:30

ViuTV (CH99) Upcoming Programs

Single Papa

Iron Ladies

• Continue producing and releasing quality scripted and non-scripted content to continue expanding the viewership base

Female empowerment drama featuring:

Myolie Wu

(胡杏兒)

Carrie Ng

(吳家麗)

Ronald Cheng

(鄭中基)

Maggie Cheung

(張可頤)

Leap Day Warriors Within

IT Solutions Business

31

COVID-19 Impact to Business

COVID-19

• COVID-19 has significantly impacted most of the sectors, heavily affecting hospitality,

travel and retail especially

• Some public tenders in Hong Kong delayed, as the government focuses its effort in

combating the virus

• Enterprises are more conservative in discretionary IT investment due to uncertainty of the

economy

Business Impact

• Take all necessary precautions to safeguard our employees

• Through structured business continuity plan, we maintain efficient and resilient

business operations despite lockdown in some countries

• Empower our teams with online collaboration and communications tools to work

remotely and effectively, and continue to reliably serving our customers

Mitigation Measures

• Stable recurring revenue from data center and managed services projects from the public sector

• Seize business opportunities in automation, cloud-based solutions, and digital transformation

initiatives

• Awarded largest-ever multi-year strategic IT outsourcing and business transformation contract in

Singapore

Business Resilience

32

33

Travel & Transportation

Track Access Management System Supported a railway operator in Singapore

to automate and optimize engineering and

maintenance work planning

eCommerce

Online Marketplace Implemented the eCommerce platform

for a regional direct selling company to

revamp their e-stores with customer-

centric design to drive sales

Insurance

Next Generation Insurance

Platform Empowered a leading life insurance

provider to digitize customer journey and

transform selling processes with automated

sales tools

Telecom

Digital Business Enablement

System Enabled a telecom service provider to

undergo business transformation, enhancing

digital experience with unified customer

management

Property

Integrated Smart Mall Platform Implemented the LoRaWAN-based

platform for a shopping mall, seamlessly

integrated with various systems to deliver

differentiated services

Financial Services

Integration Platform as a Service

(iPaaS) Deployed the integrated platform for a

financial regulator to automate and

streamline global trading processes

Driving Enterprise Digital Transformation and Accelerating Growth through IP Creation

Others

High-Tech & Media

Retail & Manufacturing

Travel & Transportation

H1’20 Revenue by Industry

Public Sector (Intl)

Secured orders of US$1,354 million as of June 30, 2020 (+43% YoY)

Business Process Outsourcing

Technical Services

Application Development &

Maintenance

Enterprise Applications

Digital, Cloud Solutions &

Infrastructure

H1’20 Revenue by Services

Revenue by Industry & Services

34

Public Sector (HK)

Telecom

BFSI

31%

24%

18%

10%

11%

1% 4%

1% 13%

27%

36%

21%

3%

Radically modernize legacy IT systems and

simplify IT operations to lower costs and

accelerate digitalization

Build new, agile IT capabilities for quicker time

to market and enhanced customer experience

Bring telecom and IT technologies closer to

accelerate innovation and data-driven

decisions for business growth

Solutions

Value

Industry Case Studies

Communications, Media and High-Tech

StarHub

Strategic technology partner to operate

StarHub’s IT applications and infrastructure,

adopt several agile and digital technologies to

increase agility and efficiency in accelerating

its transformation

Continuous monitoring of agency’s servers

and systems to minimize disruption and

increase operational efficiencies

Responsive onsite support to increase agency

staff’s effectiveness on existing systems

Increase user productivity by 20%

Public

28 Government Agencies in Singapore

Awarded new and renewal contracts for

the provision of Agency Tenant

Management Services comprising of

remote infrastructure support for servers

and onsite support to end-users

Enhance operational efficiency and

strengthen security surveillance at the third

runway, which serves 30 million additional

passengers annually

Scalable backbone cable infrastructure

supports the future development of various

communications systems at the third

runway

Travel & Transportation

Airport Authority Hong Kong

Implement intrusion detection surveillance

system, CCTV and voice & data cabling

solutions to the newly reclaimed third

runway areas of Hong Kong International

Airport

35

Provide diversified IT expertise and proven

best practices to support business growth

Achieve significant ROI with tangible

outcomes in cost-savings and productivity

gain

Access to new technologies and rich IT

resources which can be deployed flexibly

Enhance customer experience with new

excitement

Reliable control systems ensure all

shows run efficiently

Seamlessly integrate the specialty

solution with existing systems

Provide enhanced Straight-Through

Processing (STP) and connectivity for

HKEX’s global community of customers

Acting as a high performance

communication platform supporting multiple

financial message formats

Accelerate HKEX’s next generation

program projects & services

Solutions

Value

Industry Case Studies

Retail, Manufacturing and Logistics

Tien Li Offshore Wind Technology

Strategic IT outsourcing partner to

manage and optimize IT operations

Hospitality

International Theme Park

Design and implement theme park show

lighting and AV control systems with

professional project management to

renovate an existing attraction

Banking, Financial Services & Insurance

Hong Kong Exchange & Clearing Limited

Design, implement and maintain the next-

generation Post Trade Gateway (PTG)

supporting real time messaging in multiple

channels and message standards

36

World-class Data Center Services

• Phase 1 of the new data center in Fo Tan is fully sold, while one-third of the capacity of Phase 2 has been pre-sold. Phase 2 is on track to be completed by the end of 2020.

• Maintained high utilization rate across all data center facilities in Hong Kong and mainland China

• Evaluating expansion of data center capacity in Hong Kong and new data center options in Southeast Asia

• Focus on addressing the growing demand from large cloud providers and global financial institutions

37

International Business Expansion

Growing our teams and expanding business in

Singapore, Malaysia, the Philippines and

Indonesia, in line with our strategic direction to

become a leading regional player

Extending our IP-based solutions developed from

Hong Kong to the telecom, public sector, and travel

& transportation industries in Southeast Asia

markets to drive business growth

Focus on providing end-to-end outsourcing and

managed services to large enterprises and public

sector, helping clients to achieve cost efficiency and

business agility

38

Market Recognition

Marketing Excellence

2020 Asia-Pacific Stevie Awards

• Bronze Stevie® Award in

Innovation in the Use of Video

• Bronze Stevie® Award in

Innovation in Social Media Marketing

Market Leadership

Largest IT Services Provider in Hong Kong

Source: Gartner “Market Share: IT Services, Worldwide 2019,” Dean Blackmore et al, 13 April 2020

39

Summary

HKT will continue to prudently invest in deploying 5G services and

developing innovative applications for consumer and enterprises in

Hong Kong

PCCW Media will provide the best entertainment to our

viewers across our free, pay and OTT platforms in Hong Kong and

continue to expand our presence in the region

PCCW Solutions will continue to leverage our portfolio of

intellectual properties and expertise to expand and deepen the

relationship with our customers, helping them to become more

resilient and dynamic in response to rapid market changes

The leading provider of digital services in Asia for consumers and enterprises 40